Executive Summary We cover best-fit functionality in how it works and the implementation steps in best-fit. Why the best fit historical accuracy is lower than generally proposed. Video Introduction: How to Understand Best Fit Forecast Model Selection Text Introduction (Skip if You Watched the Video) Best fit forecasting is a procedure within most supply chain…
Executive Summary How the Univariate View in SAP DP Works Forecasting in Interactive Planning (Univariate Button) The Parameters Tab Model Tab Horizons Tab Profile Tab and Assignment Settings Tab The Different Methods of Assignment What to Watch Out for When Using the Univariate View Our References for This Article If you want to see our…
Executive Summary In SAP DP, different forecast methods can be applied to Forecast Profiles. The Forecast Profile can be assigned in the Planning Book, but it is a bad practice. There is a Forecast Profile assignment transaction in APO. Introduction to Forecast Profile Assignment Forecast Profiles are what control statistical forecasting in SAP DP. You…
Executive Summary Reorder points have a poor reputation, and they are underused, but they are appropriate under certain circumstances. It is critical to understand how to reorder point contrasts with MRP or a non-forecast based planning versus forecast-based planning. Introduction MRP is a forecast-based planning method. Reorder points are a non-forecast or consumption-based planning method….
Executive Summary The percent forecast error is commonly calculated in a problematic way. We cover the proper forecast error measurement in the time dimension. Video Introduction: Forecast Error Text Introduction (Skip if You Watched the Video) Not much thought is given to this topic, yet companies’ forecast errors are normally measured based on a month….
Executive Summary MAPE, or Mean Absolute Percentage Error, is a method of forecast error calculation that removes negatives from the equation. The MAPE calculation must be weighed to obtain a view of the actual forecast error in relation to the overall forecast database. Introduction (Skip if You Watched the Video) MAPE, or Mean Absolute Percentage…
Executive Summary Why quantifying procurement costs from forecast error and forecast accuracy is essential. Separating the reasons for procurement cost variability and the production costs calculator. Introduction The background as to the overall topic of forecast inaccuracy cost estimation is explained in this article. Conversely, what is the benefit of forecast accuracy? This article contains…
Executive Summary Forecast error has a specific cost to procurement. Why quantifying procurement costs from lower forecast accuracy is essential. Introduction The background as to the overall topic of lower forecast accuracy cost estimation is explained in this article. This article contains the calculator for one of the expenses associated with lower forecast accuracy, which…
Executive Summary Forecast inaccuracy has a cost for transportation. We quantify the cost of forecast inaccuracy with our expedited transportation costs calculator. Introduction to the Quantification of Forecast Inaccuracy The background as to the overall topic of forecast inaccuracy cost estimation is explained in this article. However, this article contains the calculator for one of…
Executive Summary Our lost sales calculator estimates lost sales so that it can be used to set service levels. We offer two versions of the cost of inaccuracy calculator. Video Introduction: Quantification of Higher Forecast Error Text Introduction (Skip if You Watched the Video) The background as to the overall topic of forecast error cost…